Corporate bond activity soars in realty sector in August

Corporate bond activity soars in realty sector in August

The real estate sector led this surge, issuing over VNĐ22.1 trillion, an increase of 295 per cent from July and 202 per cent year-on-year.

The Becamex building in HCM City. — Photo becamex.com.vn

The Vietnamese real estate sector has witnessed a remarkable surge in corporate bond issuance in August, with a staggering 202 per cent increase from the same period last year.

In its latest report, MB Securities (MBS) said that the corporate bond market saw renewed activity in August, with total issuances estimated at over VNĐ61 trillion (US$2.3 billion), up 22.1 per cent from July but down 9.7 per cent year-on-year.

The real estate sector led this surge, issuing over VNĐ22.1 trillion, an increase of 295 per cent from July and 202 per cent year-on-year. This amount accounts for 36.2 per cent of total market issuances, significantly higher than the 17.7 per cent average earlier this year.

Key issuers included Vinhomes with VNĐ15 trillion at an interest rate of 11 per cent for a term of 39–42 months, Becamex with VNĐ3 trillion at rates between 10.3 per cent and 10.5 per cent for 36–48 months, and Saigon Mechanical Engineering Corporation with VNĐ2.5 trillion at 9.2 per cent for 84 months.

The industry's average issuance interest rate of 10.6 per cent in August pushed the overall market average to 7.9 per cent, the highest in nearly a year.

The market saw six public bond issuances in August, totalling over VNĐ6.3 trillion from three banks and one infrastructure company. In the first eight months of 2025, public bond issuances reached nearly VNĐ47.8 trillion, up 43.4 per cent from 2024.

Overall, corporate bond issuance in this period approached VNĐ380 trillion, a 52.6 per cent increase year-on-year.

Real estate companies have also been actively repurchasing their bonds. In the first eight months of 2025, these firms bought back more than VNĐ42.5 trillion in bonds, signifying a 47 per cent rise over last year. The buyback value in August alone reached VNĐ4.8 trillion, an 84 per cent increase month-on-month and double the amount from August 2024.

The non-bank sector has played a significant role in this buyback trend, investing approximately VNĐ19 trillion in repurchased bonds, nearly five times the previous month’s figures.

As of mid-September, companies had fulfilled 64 per cent of their bond repayment obligations for the year, amounting to VNĐ166.9 trillion, data from FiinGroup showed. Looking ahead, the upcoming months are expected to see a decrease in bond maturities, with only VNĐ21.7 trillion due in October, which is significantly lower than peak periods. 

Bizhub